The Bangladesh government, in the budget session, has proposed a regulatory duty of 20% on billet imports , for which tariff value is fixed at USD 400/MT in a bid to protect local industries.
Government has also proposed 15% VAT on tariff value + regulatory duty. But, it is adjusted at the time of sales of finished good.
Earlier, there was a fix import duty of 7000 BDT (Bangladesh Taka) equivalent to USD 90/MT for billet coming from non-SAARC nations and zero duty for billet imported from SAARC nations.
But proposed duty structure will be applicable for all imports, irrespective of origin.
Reduction/increase of customs duty on construction materials
| S. No. | Description of goods | Existing Rates | Proposed Rates |
| 1 | Boulder stone | CD – 25%, VAT – 15% | CD – 5%, SD – 10%, VAT – 15% |
| 2 | Broken or crushed stone | CD – 25%, SD -20%, VAT – 15% | CD – 5%, SD – 30%, VAT – 15% |
| 3 | Ferro Alloy | RD – 25% | RD – 15% |
| 4 | Billet | Specific duty BDT 7000/MT, VAT – 0% | Tarrif Value $ 400/MT, CD – 0%, RD -20%, VAT – 15% |
| 5 | Bar & Rod | CD – 10%, 25%, RD-4%, VAT – 15% | Tarrif Value $ 400/MT, CD – 5%, RD -20%, VAT – 15% |
| 6 | Angle | CD – 10%, 25%, RD-4%, VAT – 15% | CD – 5%, SD -20%, VAT – 15% |
| 7 | Fly Ash | CD – 10% | CD – 5% |
Steel making capacity in the country has recently increased to 3 MnT from 0.8 MnT in 2015. Big players like Abul Khair, BSRM and KSRM have increased their steel making capacity in order to meet increasing domestic demand.
Bangladesh imports around 1.5-2 MnT billet annually, out of which 60-70% is from China and rest from India, Russia, Ukraine.
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